Practice Exam 1 — BattleActs Exam 8 Forum

CAS_Hybrid practice exam #10 (Spring 2019 exam8 q9)

twitte — Sat, 26 Oct 2024 14:13:26 +0000

Question is whether to implement. Read the examiners report and the 10 answers there - and here's what I don't get.

The "standard LR" includes the Xmod - correct (so sample 10 is wrong). Then if you think about the magnitude of the xmod that is baked into the standard LR - then you manual loss ratios taht are completely upside down, right. If it takes a .4 mod to get to a standard LR factor of .8, then then manual Loss ratio is a 2. So rather than saying that the plan "undercorrects" for risk differences - which would generally be true with upward sloping std loss ratio - you have to conclude that this plan just fails at identifying riks differences and gives giant credits to terrible performing risks. ...

PE1 Question 15

SuccessAt8 — Sun, 13 Oct 2024 13:19:44 +0000

In part b, we are asked to calculate the premium for LDD, and the solution uses table M. Should Limited Table M be used to calculate the risk charge instead?

#11

xlto22 — Sun, 22 Sep 2024 00:48:35 +0000

Hi, I was under the impression that the Schedule Rating Mod table would be provided on the exam which could help answer the "max mod" question. Could you please share your thoughts on this? Thank you.

#7a

xlto22 — Sun, 22 Sep 2024 00:43:40 +0000

Hi, regarding part a, is it incorrect to apply efficiency test alone to determine the more equitable plan?

#20c

xlto22 — Sun, 22 Sep 2024 00:40:15 +0000

Hi, regarding part c, the solution states that LAE is not part of the basic prem, is this b/c this is a WC retro policy so we have the "PcF" term outside of the basic prem?

#19

xlto22 — Sun, 22 Sep 2024 00:32:30 +0000

Hi, the problem states that E[X; 100k] = 12310, ILF(100K) = 0.667 and 250K is the basic limit. Therefore, is it correct to to divide 12310 by ILFs of 0.667 to arrive at E[x; 250k] = 18465? and similarly, E[X; 1M] can be calculated via 18465 x 1.267 which is 23389.